EXPLAINER-What is a clearing house, LME nickel surge puts this in the spotlight

They can, but it is very rare given there are several safety nets to burn through before that happens. Actual failures include a clearing house in France in 1974, in Malaysia in 1983 and in Hong Kong in 1987.(File pic shows Nickel sheets at Kola Mining and Metallurgical Company, a subsidiary of Nornickel metals and mining company, in Monchegorsk in Murmansk Region, Russia February 25, 2021)

LONDON: The London Metal Exchange (LME) took emergency measures to halt trading in nickel on Tuesday as prices doubled to more than $100,000 a tonne.

The surge was blamed on short-covering by one of the world's top producers as Western sanctions squeezed Russia, a major nickel producer. Traders said some holders of nickel positions had also struggled to pay margins to their clearing house.